Citi: HKEX's revenue and costs last quarter exceeded expectations

Citi published a report indicating that HKEX (00388.HK) announced a net profit attributable to shareholders of HKD 4.3 billion for the fourth quarter of 2025, a quarterly decrease of 12% and a year-on-year increase of 15%, which is 16% higher than market consensus. Core revenue was HKD 5.5 billion, down 12% quarter-on-quarter but up 17% year-on-year, exceeding market expectations by 2%, mainly driven by increased listing fees and custody fees.

The bank noted that HKEX's investment income for the last quarter was HKD 1.2 billion, which was 45% higher than market expectations, partly due to non-listed equity gains of HKD 163 million and foreign exchange gains of HKD 53 million recorded during the quarter. Operating expenses increased by 4% year-on-year, mainly due to rising depreciation costs, but were 9% lower than market expectations. A second interim dividend of HKD 6.52 per share was declared, with a payout ratio of approximately 89%. The rating is "Buy," with a target price of HKD 505